The United States government was initially slow to respond, failing to recognize the magnitude of house of cards (pun intended) that was about to collapse. Eventually, several housing/foreclosure assistance programs, along with their requisite acronyms, were gradually rolled out over time.

Not a single one, or all of them in combination, however, have had their intended impact on recovery. Not yet, anyway.

In fact, in a recent Gallup Poll, 58 percent of Americans want the government to do more to prevent additional foreclosures. In contrast, 34 percent of Americans are against increasing government intervention and prefer that “housing market resolve its problems in its own.”

The complete study, which you can view right here, is more detailed, drawing distinctions between political parties, annual incomes and college graduates.

The good news is that Gallop reports that collective confidence about the national economy, as well as the job outlook, is on the rise. And well all know, people must have jobs and earn incomes to be able to afford houses.

That’s something that just isn’t happening right now, with only 66 percent of those polled owning their primary residences. That ties a 66 percent all-time low.

To read more about the government-backed foreclosure/housing assistance programs — HAMP, HARP, 2MP and HAFA — currently in place click here.

Many Americans are taking the Foghat approach to living these days, unable (or unwilling) to meet their monthly mortgage obligations and, in the process, living rent-free until theirs lenders evict them from their homes.

And with the average distressed homeowner able to live like this for nearly two years (674 days) it’s actually emerged as a popular “strategic” move because of the economic hardship plaguing millions throughout the nation. Indeed, according to a recent CNN Money report, nearly 40 percent of homeowners in default have not paid their lenders a single penny throughout the entire foreclosure process.

The other 60 percent in distress have made some sort of payment(s), ”looking for ways to make good with lenders and get their homes back.”

So how is it possible to live in a home for so long without paying a mortgage?

Well, first, there is the fact that the United States is in the midst of a terrible housing crisis — one of the worst ever.

Foreclosures are abundant, lenders are overwhelmed, robo-signing scandals are rampant, court rooms are beyond clogged with cases. All these conditions, and several others, add up to the foreclosure process taking much longer than it should.

But, that’s not all.

In states like Florida, where foreclosure can take more than three years or longer to complete, and elsewhere homeowners — along with their throng of foreclosure attorneys — have a few tricks up their sleeves to delay foreclosure even longer.

Among the many stall tactics:

• Challenging the bank’s actions
• Waiting to file paperwork right up until the deadline
• Requesting the lender dig up original paperwork
• Declaring bankruptcy ( in some extreme cases)

Meanwhile, the homeowners live rent-free for literally years, saving money and, in some cases, even making it by renting out rooms to friends and relatives, among others.

All the while, holding out hope that a resolution can be hatched that will help them stay put before the local Sheriff comes a knocking, demanding that they vacate the premises.

Still looking for ways to cauterize the nationwide foreclosure crisis, the Barack Obama-led administration today announced another plan aimed at keeping roofs over the heads of unemployed homeowners. The latest effort is available to out-of-work homeowners who have FHA-insured loans, which is about 3,500 borrowers a month, according to the Los Angeles Times.

To put that into more perspective, the report indicates that “only 10% of some 50 million mortgage loans outstanding nationwide are backed by the FHA.”

The good news is that mortgage servicers who participate in the Home Affordable Modification Program (HAMP) will be required “whenever possible” to extend the program to distressed homeowners who qualify for the federal loan modification program, adding about another 1 million or more into the mix.

However, the HAMP candidates who qualify for the year-long forbearance could have the 12 missed payments tacked back onto their mortgage balance once they are on solid financial footing.

The report indicates that several “hurdles” are being lifted to qualify for the program, making it easier for unemployed homeowners to qualify for the assistance.

If you’re unemployed and would like to learn more about this latest foreclosure assistance program and others click here.

The program connects distressed homeowners with cash-laden investors (referred to as “Angels”), facilitating short sales to avoid foreclosure situations. But the sale is only temporary.

That’s because the “Angels” then rent the properties back to the original owners at reduced price. And when the homeowners are back on their feet financially, they have the opportunity to buy back their homes for much less than what they originally owed.

It’s a “win-win” solution that AZFamily.com illustrates in the following example:

“… a homeowner bought a home for $419,811 paying $2700 per month for the mortgage. The investor purchased the home for $175,000 and then rented the home back for $1750 per month. This was a significant savings to the homeowner who was experiencing difficult economic times. Then in two to four years, the homeowner is able to buy back their house and in the above situation did so for $232,925.”

Can’t beat that. HAMP, HAFA and the rest of “Making Home Affordable” certainly can’t. Not now, anyway.

For more on “Housing Angels” – especially if you’re a distressed Arizona homeowner interested in assistance — be sure to visit the organization’s website right here.

Losing a home to foreclosure can be devastating.

Heaping helpings of financial stress and truckloads of uncertainty about what the future holds can break people down and even tear apart families.

U.S. News and World Report today provides seven helpful tips to help distressed homeowners cope under these emotionally-charged circumstances.

Check them out:

1. Consult proper counsel
2. It’s not your fault
3. Think long-term
4. Reduce other financial stress
5. Understand the steps of foreclosure
6. Talk about it
7. Move on

The common thread weaved throughout the entire article is to understand that “you are not alone.” Indeed, a record number of homeowners have lost their homes to foreclosure in recent days, months and years, picking up the pieces and starting fresh elsewhere.

Life goes on — it’s up to you to make the best out of a bad situation rather than let it continue to consume your existence.

For a more detailed description of the seven stress-relieving steps listed above be sure to read the entire article right here.

Those who fail to learn from history’s mistakes are doomed to repeat them.

Current and future homeowners would be wise to examine the causes of the real estate bust that has forced countless families into foreclosure and many more fighting to avoid it.

Unemployment, divorce, illness and other unforeseen events are hard to avoid and nearly impossible to predict. But there are several situations for which homeowners can prepare and control.

NASDAQ.com offers “3 Lessons to Learn from Foreclosure:”

1. Live within your means. Basically, don’t stretch your finances too thin. Sure, that house down the block is fabulous. But if it means you’re going to have to work three jobs just to afford it, as well as all the living-related costs that are involved, you need to look elsewhere. There are several great (and affordable) deals on the market today. Take your time, shop around and crunch the numbers. Hard.
2. Get a better understanding of the terms of your mortgage. Most distressed homeowners got into foreclosure trouble because they didn’t understand their mortgages. Adjustable and balloon rates — those that increased over time — created impossible repayment situations. If you go from paying $1,000/mo. t0 $2,000/mo., and aren’t in a position to cover the difference, things could go downhill real fast. And they did.
3. If you have issues paying your mortgage, talk to your lender. Communication is the key to avoiding the foreclosure process. Reach out to your lender early and often of you know foreclosure is possibly in your future. Be proactive and persistent. Don’t take “no” for an answer. There are several programs available today that could help you stay in your home. Inquire about them before it’s too late.

To search foreclosed homes in your area today — and possibly save as much as 50 percent on your next (or first) home purchase — click here.

If you think that a foreclosure and/or short sale will help you improve your distressed situation moving forward, and that you can just cut your losses free and clear, think again.

The Detroit News passes a long a helpful nugget of advice about mortgage deficiency judgements, which is essentially a tool that lenders can leverage to recoup some of their losses by coming after borrowers who defaulted on their mortgages.

And in some cases, they can wait years before coming after you.

Here’s the skinny:

“Now, mortgage lenders can start selling their deficiencies to make up some of their loan losses, unleashing debt collectors who may wait years to file suit — well after foreclosed homeowners have rebuilt their financial lives and have assets that can be pursued for collection.”

Scary stuff, considering that these creditors have the authority to garnish wages and seize property to settle debts.

So how do you avoid a deficiency judgement?

This is how:

“The best way for borrowers to avoid the problem is to get a release from the lender in a short sale or, in the case of a foreclosure, file for bankruptcy.”

Watch your back!

Information and acronym overload is just one of many ways to describe all the home-saving programs currently huddled under the federal government’s Making Home Affordable umbrella.

Finding out which program may be best for you, as well as whether or not you qualify for it, can be an overwhelming experience. And if you’re in a tight spot like many of your other neighbors, struggling to meet your monthly mortgage obligations, you’re already probably way past the point of being overwhelmed.

MarketWatch.com has compiled a very helpful list of the various foreclosure, loan modification and short sale programs that are available today.

We’ve shared the most important information below, as well as direct links to the various websites where you can gather more information and request/download all the information you need to remedy your situation as quickly as possible.

Check it out:

Home Affordable Refinance Program (HARP): If you are on time with your payments but cannot take advantage of today’s lower interest rates because you owe more than your home is currently worth, HARP can help if your loan is held by either Fannie Mae or Freddie Mac, the two mortgage giants that touch perhaps half of all loans.

Home Affordable Modification Program (HAMP): If you are struggling to make your payments because your income has been curtailed or your interest rate has increased, you may be eligible to have the terms of your loan changed. The amount you owe must be less than $729,250, your loan must have been taken out prior to Jan. 1, 2009, and your total monthly housing outlay — principal, interest, taxes, insurance and homeowner’s association dues — must be more than 31% of your current gross earnings.

Second Lien Modification Program (2MP): For owners who are having a tough time making their house payments because they have a second mortgage, this program offers a way to lower the payments on the junior loan when the primary mortgage is modified under HAMP. Under 2MP, which is meant to be complimentary to HAMP and is somewhat more complicated than the other alternatives, the owner of the second lien and the company administering the loan on its behalf are given monetary incentives to reduce your rate, extend the term or possibly even extinguish the loan altogether.

Home Affordable Foreclosure Alternatives Program (HAFA): This program is designed to streamline two popular options to foreclosure, a short sale (he loan servicer allows you to sell the property for less than what is owed) and a deed-in-lieu (you voluntarily transfer ownership to the servicer with the understanding that foreclosure proceedings will be dropped). If you can no longer afford your home but want to exit gracefully and avoid the negative effects of foreclosure, this short sale program offers up to a $3,000 cash stipend to help you transition into more affordable housing. To qualify, you cannot be eligible for a trial loan modification, fail to complete a successful trial mod, or miss two consecutive payments during the trial mod period.

To read the entire article about the foreclosure prevention programs mentioned above we strongly recommend that you read the entire article on MarketWatch.com. It also goes into fantastic details about all the documentation and paperwork that you will need to collect to set the process in motion.

Good luck!